Europe flat stainless steel prices approach floor; Acerinox resumes operations
Supply remained limited in August during the seasonal summer slowdown, with many steel mills undergoing maintenance. Demand was described by stainless steel service centers as inconsistent, with “weak days alternating with lively ones.”
“Final users expect a price drop,” a distributor said, “but the current market conditions do not support this. European producers don’t give in, and buying becomes an endless negotiation.”
Fastmarkets’ monthly assessment of the price for stainless steel cold-rolled sheet, 2mm, grade 304, transaction domestic, delivered North Europe, was €2,700-2,800 ($2,993-3,104) per tonne on Friday, widening downward from €2,750-2,800 per tonne one month earlier.
Industry sources were optimistic that demand would pick up in September and that prices would stabilize. According to a second distributor, mills would struggle to maintain the current prices.
“[Stainless steel mills] will fight for [the current prices], arguing that they would rather halt production than go lower,” the second distributor said. “At the same time, they’ll do whatever they can to fill the mills… We’ve heard this countless times before. Demand is king.”
The recent downtrend in finished stainless steel prices was in line with lower alloy surcharge values, which for grade-304 material were primarily based on nickel costs.
Fastmarkets’ monthly assessment of the stainless steel cold-rolled sheet, 2mm, grade 304 alloy surcharge, domestic, Europe, was €1,999-2,051 per tonne on Friday, down from €2,110-2,160 per tonne on August 2.
Acerinox returns to market
Acerinox has resumed operations in Spain at full capacity, Fastmarkets understands, after a months-long strike-induced shutdown [LINK] that was resolved in June. The stainless steel manufacturer was also understood to have fulfilled all back-orders.
“It is not yet possible to see the effect of Acerinox’s return to the market – it is still too early,” the first distributor said. “Any renegotiation of contracts slows down deliveries.”
Published by: Zdravko Cherkezov
Gunnar Groebler new president of Wirtschaftsvereinigung Stahl (WV Stahl)
The German Steel Federation (WV Stahl) has elected Gunnar Groebler, CEO of Salzgitter AG, as its new honorary president. He replaces Bernhard Osburg, who has resigned from the position.
Groebler expressed his commitment to preserving the competitiveness of the German steel industry and ensuring its future viability, especially in light of the current challenging market conditions. Osburg thanked the WV Stahl team for their support and wished Groebler success in his new role.
“I thank the Board of WV Stahl for their trust and look forward to shaping the future of the German steel industry in this role. Bernhard Osburg has done important and energetic work and provided valuable impetus under the currently extremely difficult market conditions. My task now is to do everything I can to preserve the acute competitiveness of our industry and to advance its future viability,” said Gunnar Groebler.
Bernhard Osburg on his departure: “It has been an honor for me to represent the steel industry in Germany as president of WV Stahl. I have been passionate about this industry for 25 years and the association is a political interest group that is focused on our pressing issues and does not need any distractions. I thank the entire WV Stahl team for their professional support during my tenure and the management for the excellent cooperation. I wish Gunnar Groebler every success and a happy hand in his new task.”
Centravis supplies pipe to Germany’s Voss
Ukrainian stainless seamless pipe producer Centravis has agreed on the regular supply of its products to German company Voss Fluid, which specialises in hydraulic connections and has subsidiaries in France, Poland, Italy, Spain and China, the company tells Kallanish.
According to Centravis, Ukrainian seamless pipes are used to produce joints with a very high degree of protection, which provides protection against leaks even in the most difficult operating conditions. In particular, these are utilised in projects that use hydrogen and compressed natural gas. “Voss Fluid has now developed and patented a special hydraulic connection for hydrogen and Centravis mainly supplies pipes for such projects,” it adds.
“We expect that, over time, the number of orders in this segment will grow, as hydrogen projects are becoming more popular every year,” says automotive sector lead at Centravis Viktor Chernetsky.
Earlier, Centravis, together with French company Duncha France, became a participant in the EU project for the production of cars with a hydrogen engine. For its implementation, Centravis has developed a line of high-precision seamless stainless pipes – H2FIT. They will be installed in light trucks and will help meet the EU’s zero-carbon targets.
Centravis increased production in the first half of the year to 6,880 tonnes, up by 9% on-year.
In 2023, Centravis posted production of 12,200t, up by 12% on-year (see Kallanish passim). Sales increased to 12,300t, up 7%. Centravis’ revenue remained flat on-year in 2023 at €135 million ($146m). Ebitda reached €10m against €11.3m in 2022.
The pipemaker sold more than 99% of its products on export markets. The main ones were Germany, with a share of about 40%, and the USA with a share of 20%. Significant volumes were also shipped to Italy, Austria, and the Czech Republic. In total, last year, supplies were sent to 38 countries.
Svetoslav Abrossimov Bulgaria
Northwest Europe CRC prices come under pressure
Coil prices in Europe continue to soften further as the summer nears its end, with cold-rolled coil struggling to maintain its value against hot-rolled and galvanized coil.
CRC production can cost nearly the same as galvanized-coated coil, according to a German industry senior. The re-rolling requires re-heating, while the process for galvanising HRC undergoes a heating effect during the zinc bath.
“That’s why certain sorts of CRC match the costs of galvanized coil,” he says.
Additionally, many mills can roll HRC to low thicknesses under 1mm that elsewhere require extra cold-rolling.
Traditionally, hot-dip galvanized coil tends to be at least €100/tonne ($110) higher than HRC, and CRC around €80 higher.
Some buyers in Germany and the Benelux confirm this relation, giving the lower current end for HRC from domestic mills at €580/t ex-works, and that of CRC at €660-670. HDG remains stronger, still holding at above €700.
Until a month ago, CRC prices had also held at above €700, but have since notably given in.
For months, mills had little interest in making CRC because of import pressure, industry observer tells Kallanish.
When European prices were still €20-30 higher a month ago, CRC imports could be had for €660/t delivered Ruhr. Domestic pricing has meanwhile closed in on import prices.
One German consultant with a proprietary forecast model assessed CRC already last month at around €680. That was only €60 above the HRC price of €620 that prevailed then, and confirmed the impression of many that the HRC-CRC gap is narrowing.
A Dutch service centre points at the “low appetite” from the automotive sector, a main consumer of CRC. This is especially painful for the integrated mills with their automotive-grade qualities.
According to him, demand from automotive for steel is 10-15% lower than last year.
Christian Koehl Germany
Tata partners with Czech service centre for decarbonisation
Tata Steel Nederland says it has signed a memorandum of understanding on decarbonisation with Czech steel service centre Steel Center Europe.
Steel Center Europe is a coil processing service centre equally owned by Japan’s Sumitomo Corporation and Spain’s Bamesa. It was established in 2004 by Sumitomo and Toyota Tsusho. Bamesa became co-owner in 2020.
The steelmaker announced the partnership on its LinkedIn account but did not specify what it entails. The note refers to Zeremis, Tata Europe’s emissions-reduced steel brand, which suggests the partnership is about Tata supplying Zeremis to the Czech firm, Kallanish notes.
“To support the green journey of all European mills, a separate department has been established within the Sumitomo Group, demonstrating their strong commitment to sustainability,” the note adds.
Christian Koehl Germany
Northwest European coil market deems price hike unlikely
Despite efforts by mills last month to bring coil prices up somewhat, the prices paid on the market have, in fact, continued retreating.
Some European mills were trying to increase their prices by €20-30/tonne ($22-33), “but in reality, prices are getting more and more downward pressure. There is still too much material around, and demand is not in balance with supply,” a buyer at a Dutch steel user tells Kallanish. “I do not see any clear signals that the European market will improve in the next weeks.”
Transactions are now frequently undercutting the mark of €600/tonne ($667) for hot rolled coil. Another Dutch source assesses the range of spot market prices within the EU for HRC, at between €580/t and €620/t, “depending on volumes, region, quoting mills and desired lead time”, he points out.
Lead times can be extraordinarily short these days. “Four to six weeks is possible, but even sooner if required,” the Dutch buyer says. He expresses sympathy for the mills’ ongoing suffering and notes they are very accommodating as they are vying for the sparse order volume on the market.
Meanwhile, a Belgium-based trader tells of comments he hears from Poland. Customers there are even expecting that mills will lower their prices for October. It is not quite clear if that would apply to Polish/Central European mills, or also to close-by German mills. “But I am sure that will not be their [mills’] official statement,” the trader says.
Christian Koehl Germany
Ontras, H2 Energy Europe partner on hydrogen network
German transmission system operator (TSO) Ontras and H2 Energy Europe have partnered to establish a green hydrogen transport network between Denmark and Germany, Kallanish reports.
Under an MOU, the companies will explore options to transport green hydrogen from H2 Energy Europe’s planned 1-gigawatt production facility in Denmark through the proposed German hydrogen core network (HCN). If successful, the hydrogen could be delivered to German industrial customers in Salzgitter, Berlin, Eisenhüttenstadt, Magdeburg and Leipzig-Halle, the companies said in a joint statement Thursday. These will include steelmakers, chemical manufacturers and power generators.
The companies say they could utilise the Ontras Green Octopus Mitteldeutschland pipeline, a roughly 300-kilometre-long pipeline connecting the industrial regions to the HCN. German utility EnBW, the parent company of Ontras, is investing €1 billion ($1.09 billion) to build HCN, which is estimated to come into operation by 2032.
Ontras and H2 Energy Europe plan to assess the technical and commercial transport requirements, as well as potential exit points, to bring green hydrogen from H2 Energy’s Esbjerg plant to Germany. Ultimately, the two companies intend to enter a long-term capacity contract.
“This agreement perfectly symbolises our dedication to creating a comprehensive hydrogen backbone on a European level,” says Ralph Bahke, Ontras’ managing director of controlling and development. “Hard-to-abate industries will be able to substantially reduce their carbon emissions using renewable hydrogen delivered to them through our network from sources such as this ambitious project in Denmark.”
H2 Energy Europe’s so-called Njordkraft project plans to construct a 1-GW green hydrogen production facility in Esbjerg, Denmark. The plant is expected to produce 90,000 tonnes/year of green hydrogen using power from offshore wind farms, with commercial operations planned for 2028.
Cyril Cabanes, chief executive of H2 Energy Europe, adds that connecting the proposed project to Ontras’ gas transport network in Germany, would “contribute to the development of an integrated, reliable hydrogen economy that spans across Europe.”
Reethu Ravi UK
SSAB Europe head Olavi Huhtala to retire
Olavi Huhtala, Head of SSAB Europe, has announced that he will retire during winter 2025. A recruitment process to find his successor will now begin.
Olavi Huhtala has been head of SSAB Europe and a member of SSAB’s Group Executive Committee since 2014.
He has been employed by the company since 1987, starting at Rautaruukki which combined with SSAB in 2014. He has held several leading positions including as Executive Vice President and head of Ruukki Metals.
“I have had amazing years at SSAB and the benefit of working together with engaged and competent colleagues,” says Olavi Huhtala. “Together we have built a modern company with a better product mix and improved safety. I am proud of having contributed to important events such as the combination of SSAB and Rautaruukki and in recent years the transition toward fossil-free steelmaking. Now it’s time for me to do something else in life and manage my own time.”
“I want to thank Olavi for his contributions to SSAB,” says President and CEO Martin Lindqvist. “As head of one division, he has played a significant role in developing SSAB into the great company it is today with improved profitability and a leading position in the green transition.”
Olavi Huhtala will remain in his role as head of SSAB Europe until the end of January 2025, after which he will remain as an advisor.
Steel wire rod, rebar prices inch lower in Poland amid sluggish demand
Wire rod
The steel wire rod market in Poland was quiet in the week to Friday, with buyers reportedly postponing restocking amid weak end-user demand and downbeat expectations.
“Demand [for wire rod] is very low; there is no restocking — it’s quite the opposite,” a buyer source said.
One major supplier in Poland was heard planning a maintenance stoppage of 2.5 weeks for September.
But even news about potentially lower supply in the following weeks did not spur buying, sources said.
Offers for September-delivery rolling wire rod from domestic mills were reported at 2,800-2,850 ($726-739) zloty per tonne CPT on Friday, unchanged from the previous week.
But for large tonnages, it was possible to obtain 2,700-2,750 zloty per tonne CPT, sources said.
As a result, Fastmarkets’ price assessment for steel wire rod (drawing quality), domestic, delivered Poland was 2,700-2,800 zloty per tonne on Friday, widening downward by 50 zloty per tonne from 2,750-2,800 zloty per tonne on August 30.
Import offers were also unchanged week on week.
Drawing-quality wire rod offers from Italy to Poland were heard at €642-670 ($712-743) per tonne CPT, depending on the location.
From Ukraine and Moldova, offers for mesh-quality material were heard at €620 per tonne CPT. Similar offers were heard from a German supplier to Poland.
Rebar
The rebar market was also quiet in Poland, but order intake for cut-and-bend rebar was quite good, and cut-and-bender facilities in the country were not accepting orders for the second half of October, sources said.
Interest for straight rebar was lower from its main end-user sector because “construction companies want to get material as much processed as possible,” a source said.
Offers for rebar from two Polish mills were heard at 2,610-2,660 zloty per tonne CPT for lots “starting with 100-200 tonnes,” a second source said.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, cpt Poland was 2,610-2,660 zloty per tonne on Friday, down by 10-20 zloty per tonne from 2,630-2,670 zloty per tonne on August 30.
In the secondary market, prices for rebar from stock were heard at 2,680-2,730 zloty per tonne CPT, depending on the region.
Cheaper import offers were also dragging on Polish rebar prices, Fastmarkets understands. Notably, import offers of rebar from Germany to Poland were heard at €615-625 per tonne CPT.
From Ukraine, offers for November-delivery rebar were heard at €570 per tonne DAP border for material with 10-32 mm diameter, which nets back to €600 per tonne CPT. Extras for 8-mm-diameter material were reported at €10 per tonne.
Published by: Julia Bolotova
European HRC prices continue to slide on persistent lack of demand
A combination of slow demand from key end-user sectors and chronic oversupply continued to act as a drag on domestic HRC prices in Europe.
Sources said the recent news about the potential closure of two factories at leading German automaker Volkswagen had flustered the steel sector and said it might aggravate the oversupply situation in European HRC. They added, however, that there had been no immediate effect and that Volkswagen’s decision was not yet firm.
Long-term contracts with original equipment manufacturers in the automotive industry for the second half of 2024 were only recently closed at €740-750 ($821-832) per tonne – and even at €700 per tonne in some cases – in contrast with €800 per tonne in the first half of the year.
“EU mills made some concession for H2 [2024] contracts with the automotive [manufacturers], but the gap with the spot market is still too big. Negotiations for H1 2025 will start in October and there will be a fight for another decline,” a buyer in Germany said.
In the spot market, buyers were in no rush to replenish stocks, given the slow order intake.
“Traders and steel-service centers (SSCs) are postponing bookings because of uncertainty over price developments, due to the disappointing performance of the automotive and construction [sectors], but also because of the short lead times [from the EU mills] or sufficient stocks” a buyer source in northern Europe said.
“At the same time, there is fierce competition especially between SSCs because of high inventories and cashflow needs.” the source added.
On Friday, offers from integrated mills in Germany and the Benelux region were heard at €600 per tonne ex-works, but Fastmarkets understands that some producers are ready to sell at €570-580 per tonne ex-works for larger tonnages.
And one major supplier was heard offering HRC at €580 per tonne ex-works.
Buyer estimates of workable prices were reported at €560-590 per tonne ex-works, depending on the tonnage, but the lower end of the range was deemed as “unworkable” by suppliers.
Nevertheless, two sources reported a booking of HRC from a Benelux-based re-roller at €560 per tonne ex-works in the week to Friday – although the deals could not be confirmed at the time of publication.
Lead times from European mills were about five to six weeks, sources said.
Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe at €580.75 ($649.39) per tonne on Friday, down by €6.95 per tonne from €587.60 per tonne on the previous day.
The index was down by €10.50 per tonne week on week and by €39.25 per tonne month on month.
In Southern Europe, Fastmarkets calculated its corresponding daily steel HRC index, domestic, exw Italy at €580.24 per tonne on Friday, down by €4.76 per tonne from €585 per tonne on the previous day.
The Italian index was down by €11.01 per tonne week on week and by €39.76 per tonne month on month.
Offers of HRC in Italy were heard at €600 per tonne CPT from domestic and European suppliers, for material with October lead times.
And a European mill sold a cargo to Italy around €600 per tonne CPT in the week to Friday, sources said.
Market participants estimated the tradable level at €570-590 per tonne ex-works for domestic coil.
Import prices were slightly weaker compared with last week, but overall, interest in overseas coil was not booming due to pending anti-dumping investigations against certain origins and safeguards measures.
This week, HRC from India was on offer to Italy at $600 per tonne CFR, sources said.
And Turkish HRC was offered to Italy at €560 per tonne CFR, including the anti-dumping duty.
Chinese HRC, meanwhile, was on offer at €530-540 per tonne CFR to Antwerp, including the anti-dumping duty, but no bookings have been reported yet.